Prime costs key to measure health of your business
Do you know the minimum amount of sales needed to make a profit? Calculating your prime costs is a good benchmark. Prime costs for restaurant owners are the total cost of goods sold plus total labor costs. Cost of goods sold (or COGS) is the combined costs of food and beverage ingredients sold at your […]
How small pay increases can have a big impact
The pressures of labor shortages are hitting restaurant owners especially hard, and many are looking to increase wages to recruit and retain workers. Even little adjustments, though, can result in significant impacts to the bottom line. Below is a good illustration of how increasing the pay of just five employees to $12 an hour can […]
Safe harbor plans are popular in a tight labor market
With the labor market becoming more competitive, employers are looking for new ways to attract and retain good employees. A safe harbor match designed 401(k) plan provides a generous and popular benefit. By opening a safe harbor plan you are investing in your employees’ retirement and incentivizing them to save at the same time. Why […]
Pay will attract, culture will retain
The current labor shortage is proving to be one of the most severe and costly impacts of the pandemic. Economists have indicated that a labor shortage was inevitable due to the aging and retirement of the Baby Boomers, but the pandemic has accelerated it. As we navigate these unprecedented times, employers are looking for creative […]
Think outside the box to attract and retain employees
It is becoming harder and harder to attract and retain good employees. Turnover in restaurants is high but sometimes thinking outside the box and offering more benefits could help with retaining good employees. Many employers already offer the “basic benefits” to their full-time employees, which includes medical, dental, and vision insurance; 401(k) retirement plan; and […]
Do your homework when selecting where to live and work
Reducing taxes is the question on everyone’s mind. While much attention is placed at the federal level due to pending infrastructure legislation, don’t forget that state income tax can play a big role in your overall tax burden. As working remotely has increased, people have more options where they live. Thus, there has been an […]
Donor-advised funds and private foundations can optimize your philanthropic impact
As we look at the potential increase in the capital gains rate, it is important to understand which tax strategies are available to mitigate your tax burden. A donor-advised fund or a private foundation are both great strategies to eliminate capital gains tax on long-term appreciated assets. Why donor-advised funds? Donor-advised funds are increasingly popular […]
Time to plan for the future is NOW
Many business owners have seen financial success in the past year and, upon review, realize that the value of their assets and businesses are at an all-time high. This makes now the prime time to understand your net worth, get your estate documents in order, take advantage of the lowest exemption amounts, and develop the […]
States given green light for SALT workaround
Since the Tax Cuts and Jobs Act of 2017, taxpayers have been limited to $10,000 of state taxes they can claim as itemized deductions. This state and local tax, or SALT, limitation has caused many people to pay more federal income taxes over the last couple years. In response, states have been looking for creative […]
Tips for keeping taxes lower should capital gains rise
An increase in the capital gains rate is under serious consideration in Congress. President Biden has proposed a plan making its way through Congress that would increase the capital gains rate on taxpayers earning more than $1 million from 20% to 39.6%, retroactive to April 2021. In the past week, the House Ways & Means […]